I am often asked what the value of horse equipment is when selling a horse property, whether in Barrington, McHenry or Kane County in Northern Illinois. Whereas your property value is going to be dictated primarily by location, your horse equipment is not. So how do you work out the value of horse equipment?
Let me clarify that I am not talking livestock, tack or other removable items you likely will take with you, I am referring to barns, stables, indoor arenas, fencing and anything else that is staying with the real estate. There are two important aspects to include in the calculation process when attaching a value to these items:
- Age of item. Even brand new they are not worth what you just paid for them a month ago. That’s no different for example than buying a brand new car. The minute you drive it off the lot, your value has declined. The older the items are the value declines and sadly quite rapidly.
- Desire for your items. There are just not as many horse property buyers as there are non horse property buyers. Your buyer pool is less and they have usually painted a picture in their minds about what they need. It may not match with what you are offering.
Formula For Calculating Value of Horse Equipment
The question you may ask me is what’s the formula to calculate it? Simply there isn’t one. The reality is you are likely looking at less than half of what you paid for it, maybe less. How do I know this? Simply I look at homes sold and compare horse properties with equipment to properties with no equipment, and there is not a lot of difference.
I appreciate you may have spent $100,000 to $200,000 of getting your property equipped but you rate of return on that investment will not be what your emotions or bank account desire or need. Indeed your improvements may be seen as Functional Obsolescence or Economic obsolescence. Simply don’t count on your value being too high. You might price your property outside the market value.